GBPUSD—rallying to resistance

I'm still long from 1.5562. The pair has briskly risen but it's getting near a key resistance level—the 1.5998 high from August 6th and the 50% retracement of the move down from 1.7043 to 1.4228. As a result I just took another third of my trade off the table for +340 pips.

My original price target was the 1.5998 high so if it moves there and looks poised to go higher I'll probably add a position. More later on this pair.

Here's the daily chart:












© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

My purpose in writing this blog is to show you how one trader, me, makes trading decisions and survives while trading Forex. One of the biggest problems I had when I first started trading was trying to apply the “rules” to actual trades. Another was the psychology—limiting losses and letting profits run. If you study my blog, you’ll see how I deal with both those issues. So my writings are not trade recommendations but rather educational in purpose. You have to decide on your own approach to trading. Remember that trading is risky.